Hercules Capital, Inc. is a business development company. The firm specializing in providing venture debt, debt, senior secured loans, and growth capital to privately held venture capital-backed companies at all stages of development from startups to expansion stage including select publicly listed companies and select special opportunity lower middle market companies that require additional capital to fund acquisitions, recapitalizations and refinancing and established-stage companies. The firm provides growth capital financing solutions for capital extension; management buy-out and corporate spin-out financing solutions; company, asset specific, or intellectual property acquisition financing; convertible, subordinated and/or mezzanine loans; domestic and international corporate expansion; vendor financing; revenue acceleration by sales and marketing development, and manufacturing expansion. It provides asset-based financing with a focus on cash flow; accounts receivable facilities; equipment loans or leases; equipment acquisition; facilities build-out and/or expansion; working capital revolving lines of credit; inventory. The firm also provides bridge financing to IPO or mergers and acquisitions or technology acquisition; dividend recapitalizations and other sources of investor liquidity; cash flow financing to protect against share price volatility; competitor acquisition; pre-IPO financing for extra cash on the balance sheet; public company financing to continue asset growth and production capacity; short-term bridge financing; and strategic and intellectual property acquisition financings. It also focuses on customized financing solutions, emerging growth, mid venture, and late venture financing. The firm invests primarily in structured debt with warrants and, to a lesser extent, in senior debt and equity investments. The firm generally seeks to invest in companies that have been operating for at least six to 12 months prior to the date of their investment. It prefers to invest in technology, SaaS Finance, energy technology, sustainable and renewable technology, and life sciences. Within technology the firm focuses on advanced specialty materials and chemicals; communication and networking, consumer and business products; consumer products and services, digital media and consumer internet; electronics and computer hardware; enterprise software and services; gaming; healthcare services; information services; business services; media, content and information; mobile; resource management; security software; semiconductors; semiconductors and hardware; and software sector. Within energy technology, it invests in agriculture; clean technology; energy and renewable technology, fuels, and power technology; geothermal; smart grid and energy efficiency and monitoring technologies; solar; and wind. Within life sciences, the firm invests in biopharmaceuticals; biotechnology tools; diagnostics; drug discovery, drug platform, development, and delivery; medical devices and equipment; surgical devices; therapeutics; pharma services; and specialty pharmaceuticals. Within sustainable and renewables, it invests in Vehicle Technology, Energy Generation and Storage, Ag Technology, Advanced Materials, and Industry 4.0. It also invests in educational services. The firm invests primarily in United States based companies and considers investment in the West Coast, Mid-Atlantic regions, Southeast and Midwest, particularly in the areas of software, biotech, and information services. The firm prefers to invest between $5 million and $200 million in equity per transactions. It invests generally between $1 million and $40 million in companies focused primarily on business services, communications, electronics, hardware, and healthcare services. The firm invests primarily in private companies but also have investments in public companies. For equity investments, the firm seeks to represent a controlling interest in its portfolio companies which may exceed 25% of the voting securities of such companies. The firm seeks to invest a limited portion of its assets in equipment-based loans to early-stage prospective portfolio companies. These loans are generally for amounts up to $3 million but may be up to $15 million for certain energy technology venture investments. The firm allows certain debt investments have the right to convert a portion of the debt investment into equity. It also co-invests with other private equity firms. The firm seeks to exit its investments through initial public offering, a private sale of equity interest to a third party, a merger or an acquisition of the company or a purchase of the equity position by the company or one of its stockholders. The firm has structured debt with warrants which typically have maturities of between two and seven years with an average of three years; senior debt with an investment horizon of less than three years; equipment loans with an investment horizon ranging from three to four years; and equity related securities with an investment horizon ranging from three to seven years. The firm prefers to invest through its balance sheet capital. The firm formerly known as Hercules Technology Growth Capital, Inc. Hercules Capital, Inc. was founded in December 2003 and is based in San Mateo, California with additional offices in North America and Europe.

Hercules Capital, Inc.

Hercules Capital, Inc. operates as a Business Development Company (BDC), specializing in providing capital to high-growth companies. It primarily offers venture debt, senior secured loans, and growth capital to privately held, venture capital-backed enterprises across all stages of development, from nascent startups to established businesses. The firm also selectively partners with publicly traded companies and lower middle-market firms seeking funds for acquisitions, recapitalizations, or refinancing. Hercules Capital provides a comprehensive suite of financing solutions tailored for various corporate objectives: Growth & Expansion: This includes capital extensions, management buy-outs, corporate spin-outs, financing for company, asset, or intellectual property acquisitions, and support for both domestic and international corporate expansion, vendor financing, and initiatives for revenue acceleration through sales, marketing, and manufacturing development. Asset-Based Lending: Focused on cash flow, these solutions encompass accounts receivable facilities, equipment loans or leases (for acquisition or facility build-out/expansion), and revolving lines of credit for working capital and inventory needs. Strategic & Bridge Financing: The firm supports critical transitions such as bridge financing to IPOs or M&A, technology acquisitions, dividend recapitalizations, and other investor liquidity events. It also offers cash flow financing to mitigate share price volatility, funding for competitor acquisitions, pre-IPO financing for balance sheet enhancement, public company financing for continued asset growth, short-term bridge loans, and financing for strategic and intellectual property acquisitions. Additionally, Hercules Capital structures convertible, subordinated, and mezzanine loans. The firm's primary investment strategy involves structured debt coupled with warrants, though it also participates in senior debt and, to a lesser extent, direct equity investments. It generally seeks companies that have been operational for at least 6 to 12 months prior to investment. Hercules Capital shows a strong preference for specific sectors, including technology (spanning software, hardware, digital media, security, business services), energy technology (such as clean tech, renewables, smart grid), and life sciences (including biopharmaceuticals, medical devices, and diagnostics). Educational services also fall within its investment scope. Geographically, Hercules Capital predominantly invests in U.S.-based companies, with a particular focus on the West Coast, Mid-Atlantic, Southeast, and Midwest regions, especially for software, biotech, and information services businesses. While equity investments can range from $10 million to $250 million per transaction, typical financing for companies in business services, communications, electronics, hardware, and healthcare services ranges between $1 million and $40 million. Although its portfolio mainly consists of private companies, it also holds investments in public entities. For direct equity investments, the firm may pursue a significant stake, potentially exceeding 25% of voting securities. A portion of its assets is dedicated to equipment-based loans for early-stage companies, generally up to $3 million, with an allowance of up to $15 million for specific energy technology ventures. Many of its debt instruments include an option for conversion into equity. The firm also actively co-invests with other private equity firms. Hercules Capital aims for investment exits through various avenues, including initial public offerings (IPOs), private sales of equity interests to third parties, mergers or acquisitions of the portfolio company, or buybacks of the equity position by the company or its shareholders. Investment horizons vary: structured debt with warrants typically matures within 2-7 years (averaging three years), senior debt within three years, equipment loans between three and four years, and equity-related securities between three and seven years. The company utilizes its balance sheet capital for these investments. Founded in December 2003, Hercules Capital, Inc. was formerly known as Hercules Technology Growth Capital, Inc. It is headquartered in Palo Alto, California, and maintains numerous offices across the U.S., including Boston, San Diego, New York, and Washington D.C., along with an international office in London, United Kingdom.

Gross margin	85.98%
Operating margin	54.42%
Pretax margin	–
Net margin	–
Effective tax rate	–
ROA	–
ROE	–
D/E	0.01x
Interest coverage ratio	–

P/E	19.57x
P/S	2.90x
P/B	2.02x
P/CF	-10.50x
P/FCF	-3.08x
P/OCF	-10.50x
PEG	–
EV multiple	7.40x

HCXZ Stock Price, Chart, Stats & News

HCXZ Stock Price, Chart, Stats & News

HCXZ chart

Fundamentals

HCXZ valuation

About

Similar securities